FG transfers Shell’s license to NNPC, NPDC

The
Nigerian government has revoked the operating license for oil mining Lease 11
in Ogoni land belonging to Shell Petroleum Development Company (SPDC) and transferred
the assets to the Nigerian National Petroleum Corporation (NNPC) and its
upstream subsidiary, the Nigerian Petroleum Development Company (NPDC).

In
a memo dated, March 1, 2019 and titled “Operatorship of Entire Oil Mining Lease
(OML) 11” signed by Chief of Staff to President Muhammadu Buhari, Mr. Abba
Kyari, the Presidency directed the NNPC and NPDC to take over the operatorship
of the entire asset.

The
president directed, “NNPC/NPDC to take over the operatorship from Shell
Petroleum Development Company (SPDC) of the entire OML 11 not later than April
30th, 2019 and ensure smooth re-entry given the delicate situation in
Ogoniland.”

The
memo also directed NNPC/NPDC to confirm by 2nd May 2019 of the assumption of
the operatorship.

The
federal government recently denied SPDC renewal of OML 11 but decided to split
it into three because “it is too large (2,800spkm).”

Shell
has 45 per cent stake in OML 11 while the Federal Government through the NNPC
has 55 per cent but Shell has been the operator of OML 11 even though it has
not been operating the oil fields due to its role in Ogoniland crisis.